Risky notes ban becomes blessing for BJP in UP, poor convinced it worked
Demonetisation was at best a political gamble that he played just three months before the polls in the politically crucial state.
New Delhi: The BJP’s victory in Uttar Pradesh is a clear public mandate for Prime Minister Modi’s demonetisation policy. It was at best a political gamble that he played just three months before the polls in the politically crucial state.
Now buoyed by the victory, Mr Modi could go for an all-out war against “corruption”, which will include targeting benami properties, a renewed campaign against black money, as well as focussing on accelerating economic reforms.
The BJP’s performance in UP and also in Uttarakhand is likely to reflect in the stock markets, which could touch a new all-time high and the Sensex may even cross the 30,000 mark when it opens next week, stock analysts said Saturday.
This newspaper had reported last week that the government, looking to target benami properties, is planning to come up with a national database of all residential and commercial properties linked with Aadhaar numbers.
The BJP got 40 per cent vote share of significant communities in UP such as other backward classes, Yadavs, Jats and Muslims. This indicates that the feeling among the poor that Mr Modi made rich and influential people stand in queues for cash during demonetisation, did the trick for the party.
Emboldened by the verdict, Mr Modi may go after black money hoarders with renewed vigour, and could also come up with social and labour sector reforms via new legislations.
“Markets will react very positively to these results. They were anyway prepared to see the BJP win, but this landslide was surely not expected,” said Ambareesh Baliga, an independent market analyst. “This will result in better market activity Tuesday. Sensex can easily go up by 600 or 700 points Tuesday,” Mr Baliga said.
Angel Broking research head Vaibhav Agrawal said that investor sentiment will get a boost with BJP’s win in UP. “BJP’s policies from the point of view of markets have been positive, such as keeping fiscal deficit in check, bringing inflation down, cutting interest rates and keeping currency healthy,” he said. “These things have played well under the BJP government and even in terms of reform agenda they have tried to push several things,” Mr Agrawal said.